Correlation Between Walmart and Pimco Funds
Can any of the company-specific risk be diversified away by investing in both Walmart and Pimco Funds at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Walmart and Pimco Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walmart and Pimco Funds , you can compare the effects of market volatilities on Walmart and Pimco Funds and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Walmart with a short position of Pimco Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and Pimco Funds.
Diversification Opportunities for Walmart and Pimco Funds
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walmart and Pimco is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and Pimco Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Funds and Walmart is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Walmart are associated (or correlated) with Pimco Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Funds has no effect on the direction of Walmart i.e., Walmart and Pimco Funds go up and down completely randomly.
Pair Corralation between Walmart and Pimco Funds
Considering the 90-day investment horizon Walmart is expected to generate 4.08 times more return on investment than Pimco Funds. However, Walmart is 4.08 times more volatile than Pimco Funds . It trades about 0.16 of its potential returns per unit of risk. Pimco Funds is currently generating about 0.12 per unit of risk. If you would invest 5,161 in Walmart on September 12, 2024 and sell it today you would earn a total of 4,294 from holding Walmart or generate 83.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walmart vs. Pimco Funds
Performance |
| Timeline |
| Walmart |
| Pimco Funds |
Walmart and Pimco Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and Pimco Funds
The main advantage of trading using opposite Walmart and Pimco Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, Pimco Funds can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pimco Funds will offset losses from the drop in Pimco Funds' long position.| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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